Two of the most recognized names in modern data infrastructure—Fivetran and dbt Labs—are joining forces. The two venture-backed startups, both funded by Andreessen Horowitz (a16z), announced they will merge in an all-stock deal that combines their strengths into a single company generating nearly $600 million in annual revenue.
The merger, confirmed to Reuters, will create one of the most influential data platforms in enterprise tech. Fivetran CEO George Fraser said the agreement is structured as an all-stock exchange, with ratios tied to each company’s revenue and growth. He added that the combined entity’s valuation surpasses their last private rounds, though its true worth will ultimately be defined by the market.
Fivetran was last valued at $5.6 billion in September 2021, while dbt Labs reached $4.2 billion in February 2022. Both companies share several investors, including Andreessen Horowitz, which has been a long-time backer of both. The Information first reported back in September that Fivetran was in discussions to buy Dbt Labs in a multibillion-dollar deal.
Once the deal closes, Fraser will serve as CEO of the new company, and dbt Labs’ Tristan Handy will become co-founder and president. The merger marks a major moment of consolidation in the data tooling space as enterprises rush to rebuild infrastructure for artificial intelligence systems that depend on clean, well-structured data.
“This is a refounding moment for Fivetran and the broader data ecosystem,” said George Fraser, CEO of Fivetran. “As AI reshapes every industry, organizations need a foundation they can trust — one that is open, interoperable, and built to scale with their ambitions. Our admiration for dbt and its remarkable community runs deep — this is about bringing together the best of both worlds to accelerate innovation and create lasting impact across the data community.”
Fraser described the merger as a “combination of equals,” adding that the new board will include representatives from both companies. He said the joint mission will focus on open infrastructure and interoperability—principles that have become increasingly critical as businesses integrate AI into their operations.
“The thing that’s really unique about this combination is our emphasis on open infrastructure and interoperability… as everyone is trying to figure out how to use their business data in the context of AI,” Fraser said.
Headquartered in Oakland, California, Fivetran is known for automating data movement—helping companies pull information from hundreds of sources into a single warehouse. dbt Labs, based in Philadelphia, is best known for creating dbt, an open-source framework that transforms and prepares data for analysis. The two products already work hand-in-hand: Fraser estimates that 80% to 90% of Fivetran’s customers use dbt’s tools.
The new company plans to keep dbt Core, the open-source version of dbt Labs’ software, freely available under its existing license. Maintaining that community is central to the deal, signaling that open-source development remains part of their long-term strategy.
Fraser said the combined company aims to become a complete data platform—offering enterprises a more integrated solution for managing data pipelines, transformations, and analytics. The increased scale, he added, positions the company for a future public listing, though an IPO isn’t on the immediate horizon.
With the merger, Fivetran and dbt Labs are betting that consolidation, not fragmentation, will define the next phase of enterprise data infrastructure—especially as the AI boom fuels demand for cleaner, better-organized data. The deal is expected to close within the next year.
